Start of self managed DMP

Hi!! Having read a lot of posts and comments I’m about to start a self managed DMP. Would probably be easier to go with one of the providers like stepchange but I want the freedom to make decisions and changes along the journey. A bit concerned with the calls and letters and the stress added to it that I know will come along but there is not much I can do about it anyway. Done my own SOA and it’s amazing how many things we don’t account for on our daily life like haircuts or clothing but most importantly an emergency fund. Anyway we have about £30000 in debt, 4 credit cards ( marbles, aqua, Debenhams and vanquis) and a loan (Bamboo) all of them paying now extortionate amounts of interest after the 0% offers finishing. Not trying to find an excuse for the debt but I definitely thought that we would get rid of it by now. However, life happens and a combination of circumstances in the last 3 years got us where we are today. I’m not behind any payments at all because that’s all  we’ve been doing but I know it’s a matter of time and we’ll get there . So best thing is trying to at least start a process of paying this debts in a more affordable way while still having a bit of a life because it just feels we’re surviving at the moment . 
I’m sure this forum will be a life saver and I already learned a few things in the last few days while reading it. Surely I’ll have more questions but for now if you guys could be so kind to answer this,  would be much appreciated : 
- very tempted to write to creditors and explain so maybe the phone calls/ letters wouldn’t be too annoying. However I’ve learned here that not having any contact until they default it’s better in the long run? 
- I bank with Barclays ( no debts with them) are they associated with any of my debts? 
- the bamboo loan is a debit card recorrente payment. Am I right in thinking if I just cancel my card and order a new one they can’t take money from my account although they have my bank account number and sort code? 
- the address on bamboo loan is still my old address from 2 years ago and it can’t be changed on their website. Worried that when they write to me with a default, I won’t know about it because they will send letters to old address? 
Thank you 

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  • sparks_2023
    sparks_2023 Posts: 161
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    edited 3 November 2023 at 12:06PM
    When my Bamboo Loan defaulted they did write to me. They sold the loan on to TBI Financial Services who also wrote me. So ideally you need to get that address updated.

    My last payment to Bamboo had been a random £8 something ( just a one off payment, not my usual monthly amount which had not been paid for a while ). TBI said in their letter that they would accept this amount per month so that's what I now pay. A nice £9-ish with no interest being added. 58 months until the debt is paid at this rate.
    Leap Day 2024 - the day of freedom. The day my pernicious debts finally died.

    Legacy Default dates :
    Mr Lender - 31/10/2022
    Fund Ourselves - 22/12/2022
    Bamboo - 30/3/2023
    Likely Loans - 14/4/2023
  • sourcrates
    sourcrates Posts: 28,543
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    Ideally recurring payments must be cancelled with your bank, its very easy to do.

    Cancelling your card may work with some banks, not all of them.

    Ring your bank and say you want to cancel the Continuous Payment Authority to Bamboo, they will do it there and then, however, you must also inform Bamboo, otherwise they will attempt to take the payment again when the next payment falls due.

    You should write to Bamboo informing them your payment authority is cancelled, give them your new address, and advise you are entering debt management, and will be in touch shortly.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Thank you guys I will definitely follow the advice!

     
  • Rob5342
    Rob5342 Posts: 1,359
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    edited 3 November 2023 at 4:58PM
    Defaulting first is generally advised here. Once defaulted the interest is stopped, the debt will dtop off your credit report after 6 years, and the debt is likely to be sold to a debt collector who is likely to accept a reduced settlement offer somewhere down the line. If you enter into a payment arrangement with a creditor then that stays on your credit report for 6 years after the debt has been paid off which is potentially much longer. You need to act in a way that will encourage the creditors to default. They default when they have given up on you which is why some people advise keeping completely quiet, telling them about your plans once may or may not encourage them to default. You certainly don't want to get into discussions with them if you want to default as they will try and "help" you by offering payment plans etc, which will just drag out the whole process longer.

    Stepchange are funded by the creditors and they have a very fixed approach of starting payment immediately and splitting the payment proportionally between the debts. There is no contract with them so once defaulted you could use them to set things up and move to managing it yourself later, but really managing it yourself is no effort at all (all you have to do is set up a standing order and send an email saying what you will be paying - a few minutes work for each debt). Always make the payments by bank transfer so you are in complete control.  
  • Thank you Rob5342
    Understood . I will not be making contact with the creditors. It’s just my  address on bamboo loan that is bothering me because I need to be aware of what they do with the debt once I start missing payments. I don’t even want to call them. Going to send an email asking to change address and see if that works. 
    I will definitely be managing it, really want to have the freedom to make decisions towards the debt. Also I think with all the information here and having people more experienced advising I feel that I can do it 
    Do you know if Barclays is linked with any of my creditors: aqua, vanquis, Debenhams, marbles, bamboo? I bank with Barclays, no debt with them so if they are not connected I won’t need to change my bank account . I don’t think they are but just in case. Thank you!
  • sourcrates
    sourcrates Posts: 28,543
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    edited 3 November 2023 at 6:52PM
    Barclays are a stand alone bank.

    They do own Barclaycard, for example, and other Barclays branded companies, but no other banks operate under their banner.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Thank you Sourcrates !
  • First month missing payments , Bamboo keeps ringing but I’m not answering. Contacted them by email to change address because they have my previous address and I don’t want to miss any important letters and I also mentioned that I am not able to make my monthly payments. Not sure if that was the right thing to do? Anyway they emailed back acknowledging about change of address and asking for me to fill an income&expenditure form. Am I right in thinking that I should just ignore the email now and wait for them to default me? I probably delayed the process a bit because I informed of difficulties in making payment? 
  • RAS
    RAS Posts: 32,462
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    Just ignore them unless you get a Letter before Action.
    The person who has not made a mistake, has made nothing
  • Bamboo didn't hang around too long before defaulting my loan. Ignore them and let it play out.
    Leap Day 2024 - the day of freedom. The day my pernicious debts finally died.

    Legacy Default dates :
    Mr Lender - 31/10/2022
    Fund Ourselves - 22/12/2022
    Bamboo - 30/3/2023
    Likely Loans - 14/4/2023
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